Climate change & KBAM
Climate change & KBAM (knowledge-based asset management)
In today's class, we have an interesting discussion about whether the 'climate change exercise' should be moved away from KBAM module exercise. Yes, look at the words meaning, 'climate change' indeed have no linkage with KBAM.
In the real world, we are interested in asset management, because it is about money, money is about position, position is about control, control is about happy....Yes, if we can control, we feel happy. But it is only a short time happy, because no one likes to be controlled. In other words, the purpose of money is to control, yet the result of controlling is to be resisted or overthrown. That is to say, the asset management eventually leads to a failure if ones do not realize its surroundings. Thus, knowledge-based asset management approach is not enough, we need climate change exercise.
One reason is about the awareness of variation. The economic climate is changed so fast, at the same time it never changed. The variation of economic climate is the similar principle with the variation of cloud. It is hard for us to control the cloud, thus we face and accept so fast weather changes. However, no matter how to change, its manifestations are wind, rain, thunder, snow, etc. It is the similar principle in economic climate. So that is why we say that economic climate is changed so fast as well as never change.
Another reason is about environment management. The environment around us is becoming worse nowadays, human beings realized this 'risk', but the worse situation still cannot be stopped. Similarly, asset management will bring with final 'failure' if we igore the environment (economic enviroment & climate enviroment) changes.
Actually, ecomomic environment and climate environment interact with one another. That's why we need climate change exercise in KBAM. This is not a knowledge learning, it is a awareness learning.